14th May 2023

We published the second edition of the Crypto Oasis Ecosystem Report 2023 at the Dubai Fintech Summit in partnership with the DLT Science Foundation and Roland Berger. If you haven't downloaded your copy yet, you can get it from cryptooasis.ae/reports.

In news this week, Bitcoin attempted to break through the $27,000 level but was unable to do so due to low weekend trading volumes, resulting in relative stability. Meanwhile, altcoins such as ETH and BNB experienced limited price fluctuations, with ETH rising back to $1,800 and BNB surging above $310.

Bitcoin had a rough few days, with the asset dropping to a multi-week low of $26,600 after initially surging from $27,500 to $28,400 following the release of US CPI numbers for April. Despite attempts by bulls to intercept the price slump and bring BTC back up to $28,000, the cryptocurrency was unable to sustain its momentum and was rejected, falling to $27,000 before dipping below $26,000 for the first time in two months. Although Bitcoin attempted to challenge the $27,000 level in the past 24 hours, it has been unsuccessful so far. As of now, the asset trades just below that level, with a market cap of $520 billion and a daily dominance over the alts at 46.3%.

The crypto community has been buzzing about PEPE, a newly launched meme coin that has become one of the best performers in the past month. The coin's market cap surged from $1 million to almost $2 trillion during this time, making many investors rich overnight. However, as exchanges such as BitMEX and Binance listed PEPE, the coin lost over half its value in the following days. Despite this setback, PEPE has rebounded in the past 24 hours, rising by 20%. Nonetheless, the coin is still down by over 30% on a weekly basis. In contrast, larger-cap altcoins such as ETH, BNB, XRP, ADA, DOGE, SOL, and others have experienced limited movement.

In the News: 

Crypto takes root in UAE: New Crypto Oasis report Identifies 1,800+ organizations in booming Web3 space. The report, developed with the DLT Science Foundation and Roland Berger, also highlighted over 8,650 professionals working in crypto, blockchain, metaverse, and Web3 ecosystems in the UAE. Native organizations accounted for 70.5% of the total number. The report offers a comprehensive summary of the UAE's blockchain evolution, including government and association, startup and project, investor and collector, service provider, corporate, and education and research perspectives. Unlock Blockchain 

Standard Chartered and DIFC join forces to offer digital asset custody services in UAE. Standard Chartered has signed a memorandum of understanding (MoU) with the Dubai International Financial Centre (DIFC) to offer digital asset custody services in the region, with plans to expand globally once regulatory clearance is obtained. The new service will be launched in the region with the help of the company's subsidiary, Zodia Custody. Unlock Blockchain 

Marathon and Zero Two join forces to create Middle East largest sustainable Bitcoin mining operation in Abu Dhabi. The new venture, Abu Dhabi Global Markets JV Entity (ADGM), will establish two mining sites with a total capacity of 250 MW of mining power. The mining operation will use excess energy from Abu Dhabi to power the sites and purchase clean energy certificates to offset non-sustainable energy use. Unlock Blockchain 

CEO of Ripple says it’s expanding in Dubai. Blockchain and payment company Ripple is expanding into Dubai, as the firm continues to battle the US Securities and Exchange Commission. Ripple will open a new office in the Dubai International Financial Centre and will host its seventh annual customer conference in the United Arab Emirates capital on November 8-9. Finbold 

Coinbase CEO Brian Armstrong heads to UAE for strategic developments. Coinbase is working with Abu Dhabi Global Market regulators for licensing and availability for Coinbase International Exchange, after it launched the derivatives exchange in Bermuda last week. The UAE, with clear regulations and strong investor and customer protection, has the potential to become a strategic hub for Coinbase. Coingape 

China launches national blockchain center to train half a million specialists. China's National Blockchain Technology Innovation Center has started operations in Beijing. It will partner with local blockchain businesses, think tanks and universities to develop Blockchain technology in the country, and train more than 500,000 distributed ledger technology specialists.  Cointelegraph  

Robinhood’s Crypto custody hits $11.5B in Q1. Robinhood's assets under custody rose to $78 billion in Q1 2023, thanks to the high market valuations of crypto assets and growth stocks. The firm saw a significant increase in the crypto assets it custodies for clients, which stood at $11.5 billion, up from $8.4 billion in year-end 2022. Blockworks 

Tether smashes records with $2.44B excess reserves and reveals Bitcoin and Gold Holdings for the first time ever. Tether Holdings has published its Q1 2023 assurance opinion, revealing that its consolidated reserves report (CRR) shows a record high excess of reserves at $2.44bn. The report has increased transparency into Tether’s reserves reporting by introducing new categories, such as physical gold, overnight Repo, corporate bonds, and Bitcoin ownership. Unlock Blockchain 

PayPal’s crypto holdings increased by 56% in Q1 2023 to nearly $1B. PayPal has revealed that it held $943m in cryptocurrency assets as of 31 March, 2023, marking a 56% increase from the previous quarter. PayPal's disclosed total liabilities for Q1 of 2023 was $1.2bn, of which crypto assets made up 77.9%, an increase of over 10% from the Q4 2022 liabilities. PayPal's cryptocurrency holdings were unchanged from the previous quarter, consisting of bitcoin, ether, bitcoin cash and litecoin. Cointelegraph 

Galaxy Digital posts $134M first-quarter profit on strong showing for Crypto Market. Galaxy Digital has reported $134m in net income for Q1, marking the first time the cryptocurrency-focused financial services firm has returned to profit since the end of 2021. The income was attributed to gains on digital assets and unrealised gains on investments. Galaxy Digital Asset Management recorded assets under management of $2.4bn, a 40% increase from the previous quarter. Coindesk 

Decentralized wallet developer Odsy raises $7.5M at $250M valuation. The Zug, Switzerland-based Odsy Foundation aims to decentralise access control in Web3 by developing decentralised crypto wallets to remove the obstacle of requiring users to have multiple wallets to access different networks and applications. Odsy's decentralised wallets are designed to provide access to different Web3 protocols and platforms through "transferable signing mechanisms" on the Odsy Network and can sign transactions on "practically any other blockchain". Coindesk 

Zero-knowledge privacy startup Webb Protocol raises $7M. Webb Protocol has raised $7mn in a seed funding round co-led by Polychain Capital and Lemniscap. The funds will go towards growing the team and accelerating the development of new privacy-focused tools. The startup plans to expand to offer a cross-chain messaging system to test data stored within the system, providing privacy while maximizing the multi-chain ecosystem experience. Coindesk 

Smart-Contract registry cookbook raises $2M to create Web3 developer support tools. Cookbook, a smart-contract registry, has raised $2mn in a funding round featuring Tagus Capital, Superscrypt, Alchemy and MaC Venture Capital. The funds will help Cookbook to reduce development costs for companies and streamline developers' work to build out Web3. Cointelegraph 

Transforming environmental sustainability with Blockchain: EY launches Ethereum-based platform for carbon emission tracking. EY OpsChain ESG's platform allows businesses to track carbon emissions and carbon credits. The system utilizes carbon emission tokens created by the InterWork Alliance, a standards organization supported by Microsoft, and it allows companies to associate their carbon output with specific product output. The platform aims to provide businesses with greater insight into their efforts to reduce carbon emissions. Unlock Blockchain 

Revolutionizing financial markets: Microsoft, Goldman Sachs, and partners join forces to develop Privacy-Enabled Blockchain network. This interoperable blockchain network will provide a privacy-enabled solution for institutional assets and synchronize previously isolated financial markets. The network, which is being developed using Digital Asset’s smart-contract language, Daml, will start testing its capabilities in July. Unlock Blockchain 

Arte News: 

Metaverse to contribute 2.8% to global GDP in 10 years, says Meta. The metaverse could generate up to $3tn in global GDP in the long term, with the most optimistic estimate at more than $80tn, according to a report from Meta Platforms and Deloitte. By 2035, the metaverse could add between $259bn and $289bn to the EU's GDP, $36bn to $68bn to Canada's, and $20bn to $38bn to Saudi Arabia's, according to the report. It said immersive solutions offer opportunities in retail and manufacturing, while XR technologies provide remote guidance and immersive training for frontline workers. XR Today 

Animoca Brands expands reach in MENA through partnership with stc play for video game distribution. Hong Kong-based Animoca Brands and Saudi Arabian telecoms provider stc play have signed a memorandum of understanding to collaborate on publishing video games in the MENA region. The deal is also part of stc play's bid to develop the gaming industry in Saudi Arabia and the wider region, and "better serve" customers with high-quality content. Unlock Blockchain 

Web3 firm Artifact Labs raises $3.25M from Blue Pool Capital, Animoca, others. The round was led by Blue Pool Capital, a fund that invests the wealth of Alibaba founders Jack Ma and Joe Tsai, while Animoca Ventures also participated. The company plans to use the funds to expand its operations, particularly by increasing the number of developers. Coindesk 

Barbie and Boss Beauties Make Joint Bid to Bring More Women into Web3. Mattel has partnered with women-led Web3 brand Boss Beauties to release a line of on-chain virtual collectibles named "Boss Beauties x Barbie." The NFTs, designed in Boss Beauties' signature style, pay tribute to the 250 careers of the iconic toy figure. The pack will include "common," "uncommon," "super rare," "ultra rare," and "exclusive" NFTs, with each pack featuring two common cards and one uncommon card and one card of any rarity level. Decrypt 

Roblox users surge 22% to New Peak despite fading Metaverse hype. Roblox has posted mixed results for its first quarter earnings, but its daily active users reached a new record of 66.1 million. Quarterly revenue and daily active users for Q1 2023 were up 22% YoY to $655.3m and 23% to 66.1 million, respectively, while total hours spent in the game rose 23% YoY. Decrypt 

MetaMask becomes first Web3 wallet to offer Ether transactions via PayPal in the US. As a result of this integration, users can transfer ETH from PayPal to MetaMask. MetaMask is collaborating with PayPal and ConsenSys, its parent company, to provide users with easier access to buying crypto and exploring the Web3 ecosystem. Unlock Blockchain 

You can own a share of a famed Andy Warhol print for just $20—kinda. The new fractionalized art platform Freeport offered Ethereum-based tokenized shares of original Warhol screen prints. Decrypt 

Why heavy metal band Avenged Sevenfold keeps betting on NFTs. Heavy metal band Avenged Sevenfold has embraced Web3 technology by launching its own NFT-based club, the Deathbats Club, and partnering with ticketing giant Ticketmaster to roll out token-gated ticket sales. The club includes 10,000 Ethereum NFTs, each featuring a unique bat illustration, and grants access to exclusive merchandise, ticket giveaways, and a dedicated online community that includes band members. Decrypt 

DatChat launches the Habytat mobile Metaverse for the masses. SmarterVerse, a subsidiary of DatChat, has launched Habytat, its open mobile metaverse, to break down the barrier to entry in existing platforms. Habytat aims to democratize access to the digital realm by making it available via mobile devices and offering free ownership of land and homes. Business Wire 

Music albums as an asset class. NFTs are transforming the music industry, providing new possibilities for artists and investors. NFTs offer unique ownership of digital content, allowing artists to produce limited-edition digital albums that can be sold for a premium price, granting fans exclusive digital content and artists an additional revenue stream. NFTs also enable transparent royalty payments and tokenization of music, allowing artists to monetize specific parts of their music and engage with fans in new ways. Coindesk 

The NFT market needs AI power to combat forgery and inflation. AI-powered NFT Price Estimation tool by bitsCrunch aims to provide accurate value estimates of NFTs by analyzing historical data and metadata, combined with social media hype around a collection. The tool has studied over 30 million NFTs from more than 2,200 collections to help buyers and sellers make informed decisions. The startup program aims to bring awareness and data transparency to the NFT ecosystem. Cointelegraph 

From FOMO to JOMO: Web3 mental health collective Peace Inside Live launches NFT collection. Digital mental health collective, Peace Inside Live, has launched a non-fungible token (NFT) collection, named the JOMO Effect, to raise funds for mental health organisations. Partnering with Deepak Chopra's metaverse organisation, Seva.Love, TIME magazine’s Web3 arm, TIMEPieces, and other firms, the collection features works by over 40 creators. The collection aims to promote discussions on the importance of mental health in Web3. Coindesk 

Bitcoin ordinals hit Binance NFT Marketplace in latest update. Binance, the cryptocurrency exchange, has announced that it will support Bitcoin ordinals or NFTs on its NFT marketplace at the end of May. The marketplace previously integrated with decentralized networks, including Ethereum, Polygon, and BNB Chain. Cointelegraph 

Pudgy Penguins signs with WME. Pudgy Penguins, a blue-chip non-fungible token (NFT) project, has signed a representation deal with Hollywood talent agency William Morris Endeavor (WME). Pudgy Penguins is the 21st highest-selling NFT project of all time, generating $250.2m worth of sales on secondary markets since its launch in July 2021. Cointelegraph  

Sui is built for games—Here's why developers are bullish. Blockchain network Sui, which launched its mainnet on May 4, has positioned itself as an alternative for game developers, as it offers unique technical specifications and a different approach to on-chain assets. Among its features, the ability to process transactions in parallel and scale horizontally by adding more nodes is designed to keep transaction fees very low. Decrypt